The competition pressure is constantly increasing due to globalization. There are already excess capacities in many markets and the supply is growing. These are challenges for all companies, especially in the retail sector. However, globalization also offers new opportunities. Today, companies have much more information about customers, their purchasing behavior, and their needs. The art is knowing how to incorporate this knowledge into corporate strategies.
But what makes a strategy successful?
The decisive factor is whether companies find ways to consistently implement strategies in a manner that can be measured. This is often lacking.
What are the key factors for a successful strategy?
The most important aspect is the communication with the people who are implementing a strategy, in other words, those people who produce, sell and are in contact with the customer. These employees need to know and understand the strategy. However, the implementation of a strategy always means changes for people in the company and in the processes. This often leads to defensive behavior and a lack of understanding. The objectives and responsibilities should be clear and transparent so that everyone is aware what is expected of management and of the employees. If employees do not feel adequately involved, this may lead to problems in the strategic implementation. The better the employees are ‘included’ and convinced of the importance of the strategic change, the more this ensures that the strategy can be successfully implemented.
The strategic implementation must be treated as a very normal company-wide process that must be controlled and monitored. The implementation of the strategy is a project where the required resources need to be provided. The task of the company’s management is not only to be a sponsor, i.e. to stand fully behind the strategy, but also to ensure that there is a project manager who knows the overall plan and the objective and who has the expertise to establish the processes with all participants and to carry out the changes.
Communication is not only important when announcing the strategy, but it is particularly crucial during the implementation phase. It is important to establish a reporting system that not only provides information about the budget and financial indicators but also provides an overview of the progress of the strategic implementation and the possible need for changes.
The implementation of a strategy not only requires concepts, planning, communication, responsibility, expertise, reporting and the comprehensive inclusion of people but also tools that accompany and support the processes, that optimize workflows, collect and analyze information and provide it at the right time and place in the right quality.
Tools, especially when it comes to IT systems, should be selected from strategic viewpoints as well, because the success of a strategy greatly depends on the resources used. The ever-changing markets, the growing competition and the ever-new possibilities of communication technology require systems that are intuitive and fast to operate and that can keep up with the growing demands.
AlfaPeople is happy to advise you in the development of your strategy, during the implementation and in selecting the right tools. Microsoft Dynamics 365 Enterprise Edition already offers a variety of options as a standard that help with the implementation. Contact us to learn more.